IHRSA’s Monthly Trends Survey Shows Consistent and Increased Club Usage - SNEWS

IHRSA’s Monthly Trends Survey Shows Consistent and Increased Club Usage

Club Operators Employ Strong Cost Management and Anticipate a Profitable Fall Season

BOSTON, MA - October 7, 2009 - The International Health, Racquet and Sportsclub Association (IHRSA) announced today the results of IHRSA’s Monthly Trends Survey, which encompasses August club performance.

IHRSA’s monthly survey of 56 participating clubs revealed “steady to improved” club attendance by members and non-members. Eighty percent of clubs’ respondents indicated comparable to increased visits for the year-to-date ending August 31, 2009 relative to the same time period in 2008. Also, year-to-date, club operators managed costs wisely as the majority of respondents (53%) reported EBITDAR as “comparable to improved” over the first eight months in 2008. With sound cost management strategies and solid health club attendance, nearly half of responding clubs (46%) expect improved revenue in the next three months, with roughly a third (32%) anticipating revenues consistent with past performance.

“Club operators have reason to remain optimistic in spite of a downtrodden economy,” said Melissa Rodriguez, IHRSA’s Manager of Research. “Frequent club usage is typically associated with strong retention rates, which implies that clubs may be maintaining loyal members as managers keep a close eye on costs, thus contributing to the club’s bottom line.”

Although many clubs (42%) reported decreases in membership dues revenue exceeding 5% in August 2009 relative to August 2008, over half the sample (52%) reported steady to increased non-dues revenue for August. Club operators are adding value to current offerings as the majority (59%) indicated having invested in equipment during the last three months. Nearly eighty percent (78%) of the sample made capital expenditures for expansion. Clubs expect to continue upgrading and developing facilities and programs as two-thirds (66%) of respondents plan to making capital expenditures for equipment, expansion, or remodeling over the next three months.

“In the face of rising unemployment rates and falling disposable income, consumers may be encouraged to make time for exercise and maintain good health,” said Rodriguez. “Clubs are enhancing their commitment to health club consumers and engaging members to invest in their health by adding value to the in-club experience.”

For more information on IHRSA research, please visit IHRSA.org/research. For media inquiries, please contact pr@ihrsa.org or +1 617-951-0055.

The International Health, Racquet & Sportsclub Association (IHRSA) is a not-for-profit trade association representing health and fitness facilities, gyms, spas, sports clubs, and suppliers worldwide. The association’s membership includes over 9,750 clubs in 78 countries, along with over 740 industry suppliers.